Booming BG shrugs off bid rumour

Tuesday 11 May 2004 17:46 BST

FRANK Chapman, chief executive at BG Group, laughed off speculation of a bid from crisis-torn Shell today, and insisted the company's high share rating was down to its successful strategy rather than takeover talk.

Shares in BG hit an all-time high of 351 1/2p last month, providing a boost for the million retail punters holding BG stock as a result of its spin-off from the former British Gas business in 1999.

But Chapman said this was down to investors 'recognising the underlying value of the business'. He added: 'We don't spend time thinking about the speculation.'

BG showed its potential value to Shell today by reporting a 4% increase in earnings to £186m for the first quarter despite a hit from the weaker US dollar. Turnover rose 11% to £860m.

Production rose to 449,000 barrels of oil equivalent a day, up 10% year-on-year. Exports from BG's key Karachaganak field in Kazakhstan have now resumed.